US opposes part of Apple contempt finding in Epic Games case at US Supreme Court

By Mike Scarcella

WASHINGTON, Sept 22 (Reuters) - President Donald Trump’s administration is backing key arguments in Apple's AAPL.O US Supreme Court appeal of a ruling that held the company in contempt in a lawsuit by “Fortnite” maker Epic Games.

Here are the details:

• In a friend-of-the-court brief on Monday, the Justice Department urged the justices to narrow the grounds for holding parties in civil contempt. Such an order would benefit Apple, but the DOJ said it filed its brief in support of neither Apple nor Epic Games.

• The justices agreed in June to hear Apple’s challenge to a judge’s decision in California federal court that found the iPhone maker in civil contempt for allegedly violating an earlier order.

• Epic sued Apple in 2020, alleging it violated antitrust law through its controls on app transactions. Epic won an injunction that mandated sweeping new rules for Apple’s lucrative app store.

• Epic subsequently accused Apple of violating that order when it set a new 27% commission on certain “off-app” purchases.

• The lower court said Apple violated the “spirit” of the injunction when it crafted the new commission rate and held the company in contempt in April 2025.

• Apple’s appeal and the Justice Department’s brief contend the lower court wrongly concluded that Apple could be held in contempt for such an alleged violation, where an injunction does not expressly forbid conduct on which a contempt finding is based.

• “Civil contempt is therefore appropriate only if the defendant’s conduct is clearly covered by the injunction’s express terms,” the Justice Department wrote in its brief.

• The government said that the Supreme Court should use the Apple appeal to clarify for lower judges how to apply a standard that permits contempt findings only when there is “no fair ground of doubt” that a party violated a court order.

• The Justice Department said Apple’s conduct related to at least one part of the lower judge’s order supported a contempt finding. Apple has denied violating the lower court’s injunction.

• Apple and the Justice Department did not immediately respond to requests for comment. Epic Games chief executive officer Tim Sweeney earlier this month said "Apple has been evading court rulings and regulatory decisions for years, and we aim to bring these practices to a close."
  
  

The case is Apple Inc v. Epic Games Inc, US Supreme Court, No. 25-1311.

For Apple: Gregory Garre of Latham & Watkins

For Epic Games: Gary Bornstein of Cravath, Swaine & Moore

For the US: D. John Sauer of the Justice Department

Read more:

US judge denies OpenAI bid to review X Corp’s settlement with Apple

US Supreme Court to hear Apple appeal of contempt in Epic Games lawsuit

Apple wins partial reversal of sanctions in Epic Games antitrust lawsuit

(Reporting by Mike Scarcella)